Energy Transfer 2010 Annual Report Download - page 54

In November 2010, Enterprise GP Holdings L.P., which, at the time, held non-controlling interests in ETE and its
general partner, merged into Enterprise Products Partners L.P. For federal income tax purposes, this merger is
treated as a change of approximately 18% of the ownership interests in ETE. The completion of the Enterprise
merger transaction did not cause a technical termination of the partnership in 2010, but it did increase the
likelihood that a technical termination of our partnership for federal income tax purposes may occur during the
twelve-month period following the consummation of the transaction.
Unitholders will likely be subject to state and local taxes and return filing requirements in states where they do
not live as a result of investing in our Common Units.
In addition to federal income taxes, the Unitholders may be subject to other taxes, including state and local taxes,
unincorporated business taxes and estate, inheritance or intangible taxes that are imposed by the various
jurisdictions in which we conduct business or own property now or in the future, even if they do not live in any
of those jurisdictions. Unitholders may be required to file state and local income tax returns and pay state and
local income taxes in some or all of the jurisdictions. We currently own property or conduct business in more
than 40 states. Most of these states impose an income tax on individuals, corporations and other entities. As we
make acquisitions or expand our business, we may control assets or conduct business in additional states that
impose a personal or corporate income tax. Further, Unitholders may be subject to penalties for failure to comply
with those requirements. It is the responsibility of each Unitholder to file all federal, state and local tax returns.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
A description of our properties is included in “Item 1. Business.” We own an office building for our executive
office in Dallas, Texas and office buildings in Helena, Montana and San Antonio, Texas. We also own a field
office building in Fruita, Colorado and lease office facilities in Houston, Texas, Rockwall, Texas, Florence,
Kentucky, Tulsa, Oklahoma, Wexford, Pennsylvania, Bridgeport, West Virginia and Denver, Colorado. While
we may require additional office space as our business expands, we believe that our existing facilities are
adequate to meet our needs for the immediate future, and that additional facilities will be available on
commercially reasonable terms as needed.
We believe that we have satisfactory title to or valid rights to use all of our material properties. Although some of
our properties are subject to liabilities and leases, liens for taxes not yet due and payable, encumbrances securing
payment obligations under non-competition agreements and immaterial encumbrances, easements and
restrictions, we do not believe that any such burdens will materially interfere with our continued use of such
properties in our business, taken as a whole. In addition, we believe that we have, or are in the process of
obtaining, all required material approvals, authorizations, orders, licenses, permits, franchises and consents of,
and have obtained or made all required material registrations, qualifications and filings with, the various state and
local government and regulatory authorities which relate to ownership of our properties or the operations of our
business.
Substantially all of our pipelines, which are described in “Item 1. Business”, are constructed on rights-of-way
granted by the apparent record owners of the property. Lands over which pipeline rights-of-way have been
obtained may be subject to prior liens that have not been subordinated to the right-of-way grants. We have
obtained, where necessary, easement agreements from public authorities and railroad companies to cross over or
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